Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign


c.			Loss before taxes on income is comprised as follows (in thousands):


	Year ended
	December 31,
	2022		2021		2020
Domestic	$	(75,422)	$	(101,245)	$	(80,086)
Foreign	(35,393)		(9,594)		(5,812)
	$	(110,815)	$	(110,839)	$	(85,898)

Schedule of Components of Income Tax Expense (Benefit)


d.			Taxes on income (loss) are comprised as follows (in thousands):


	Year ended
	December 31,
	2022		2021		2020
Current:
Domestic:
Federal	$	3,008	$	(549)	$	90
State	1,314		145		128
Foreign	9,123		5,182		8,854
Total current income tax	$	13,445	$	4,778	$	9,072

Deferred:
Domestic:
Federal	$	83	$	43	$	8
State	13		6		1
Foreign	162		1,195		(969)
Total deferred income tax	$	258	$	1,244	$	(960)
Income tax expense	$	13,703	$	6,022	$	8,112

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Carry forward losses and credits	$	57,592	$	82,530
Deferred revenues	13,376		11,628
Accrued payroll, commissions, vacation	6,852		6,867
Equity compensation	22,474		18,469
Allowance for credit losses	772		1,711
Accrued severance pay	294		391
Operating lease liability	12,462		14,453
Section 174 capitalized costs	37,964		—
Other	2,784		512
Deferred tax assets before valuation allowance	154,570		136,561
Valuation allowance	(142,563)		(118,882)
Deferred tax assets	$	12,007	$	17,679

Deferred tax liability:

Operating lease right-of-use asset	(10,320)		(12,478)
Convertible senior notes, net	—		(5,298)
Other	$	(2,042)	$	—
Deferred tax liability	$	(12,362)	$	(17,776)
Net deferred tax asset (liability)	$	(355)	$	(97)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the consolidated statements of operations is as follows (in thousands, except tax rate):


	Year ended December 31,
	2022			2021			2020
Loss before taxes, as reported in the consolidated statements of operations	$	(110,815)		$	(110,839)		$	(85,898)
Statutory tax rate	21		%	21		%	21		%

Theoretical tax benefits on the above amount at the US statutory tax rate	$	(23,271)		$	(23,276)		$	(18,039)
Income tax at rate other than the U.S. statutory tax rate	10,404			(2,621)			4,845
Tax advances and non-deductible expenses including equity based compensation expenses	941			(8,533)			934
Operating losses and other temporary differences for which valuation allowance was provided	18,201			41,340			22,189
State tax	(1,301)			(2,945)			(2,872)
Impact of rate change	(207)			(2,568)			—
Change in tax reserve for uncertain tax positions	7,785			4,850			1,489
Other individually immaterial income tax items	1,151			(225)			(434)
Actual tax expense	$	13,703		$	6,022		$	8,112

Schedule of Unrecognized Tax Benefits Roll Forward


g.			A reconciliation of the beginning and ending amounts of unrecognized tax benefits, including interest and penalties, in the years ended December 31, 2022 and 2021 are as follows (in thousands):


Gross unrecognized tax benefits as of January 1, 2021	$	4,690
Increase in tax position for current year	4,335
Increase in tax position for prior years	3,624
Decrease in tax position for prior years	(870)
Decrease for lapse of statute of limitations/settlements	(2,239)
Gross unrecognized tax benefits as of December 31, 2021	$	9,540
Increase in tax position for current year	7,631
Increase in tax position for prior years	830
Decrease in tax position for prior years	(677)

Gross unrecognized tax benefits as of December 31, 2022	$	17,324